Novo’s Latest Obesity Flop Prompts Investors to Call for a Pivot (2)

Novo Nordisk A/S’s next-generation weight-loss drug CagriSema isn’t even on the market yet, but the company’s chief executive officer is already batting back suggestions that the drug is obsolete following the release of disappointing trial results on Monday. Among investors, news of CagriSema’s poor showing against Eli Lilly & Co.’s Zepbound sparked calls for a radical shift.

Novo shares plummeted 16.5% on the news, before falling as much as an additional 4.4% on Tuesday after several analysts downgraded the stock. Novo is down more than 60% in the past year. Some investors are now leaning on Novo CEO Mike ...